52. Practice Problem-Tax Return issues Adam, Barbara, and Charlotte formed the each contributed cash of $100,000, and equal ABC Partnership, Adam and Barban Charlotte contributed land worth $130 mortgage of $30,000. In the first year with a basis of $120,000 and subject the cash basis for tax purposes) they had the following for tax purposes: os Sales 30.00 25.000 40.00 Purchases of inventory inding inventory Depreciation Section 179 expense Salaries Guaranteed payment to Adam Purchases of equipment Rent expense Interest income Mortgage interest expense Ending accounts receivable 15.00 150,000 2006 6.000 1.500 35.000 no a. Depreciation for book purposes was $20,000, and they had a bad debt accrued expense of $4,000 for book purposes, but actual charge-offs during the year. Interest income comes from earnings on the cash balance. What is ABC's ordinary business income (for tax purposes - p. 1, line 22, Form 1065) for the year? b. What are its separately stated items (those that go on Sch. K)? c. Compute total tax net income, including separately stated items, and reconcile it with book net income (the M-1 reconciliation would be the reverse). d. What are its beginning and ending balance sheets for book purposes (as would go on Sch. L, Form 1065)